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Home / NRI & Global Services / NRI Property Sale
Last updated: 2 October 2026
Selling a flat or plot in India while living abroad? The buyer must deduct TDS — often on the full sale price — unless you obtain a lower-deduction certificate. Our team handles the certificate, the capital gains computation and the remittance of the sale proceeds to your overseas account.
When the seller is a non-resident, the buyer must deduct tax at source (TDS) before paying the sale price, under section 393 of the Income-tax Act, 2025 (earlier section 195). Unlike a sale by a resident, TDS is worked out on the full sale price, not on your actual gain — so the amount held back is often far more than the tax you finally owe.
For property held for more than 24 months, the long-term capital gains rate is 12.5% plus surcharge and cess — roughly 13% to 14.95% of the sale price, depending on the amount. Property held for 24 months or less is taxed at slab rates, and TDS is usually deducted at 30% plus surcharge and cess.
To avoid excess TDS, the NRI seller can apply for a lower or nil deduction certificate (Form 128, earlier Form 13) before the sale is completed. The buyer then deducts tax at the rate in the certificate.
Based on the Income-tax Act, 2025, in force from 1 April 2026. Last updated: 27 September 2026.
The buyer deducts TDS on the full sale price, not the gain, unless a lower certificate is issued
Holding period after which the gain on property is long-term
Long-term capital gains rate on property, plus surcharge and cess; no indexation for NRIs
Lower or nil TDS certificate application (earlier Form 13), filed online before the sale
The buyer needs a TAN to deduct and deposit TDS on a payment to an NRI
Needed to remit the sale proceeds abroad (earlier Form 15CA / 15CB)
Most problems surface at the registry or at the bank, when they are hardest to fix. These are the usual ones.
Without Form 128 approved before the sale, the buyer deducts TDS on the full price and your money stays blocked until the refund.
A buyer with no TAN, or who deducts at the resident rate, creates defaults for both sides and holds up the remittance.
Remittance is delayed when Form 145 / 146, the sale deed or proof of purchase funds are not ready for the bank.
A property sale usually leads to a tax return, a remittance and sometimes a treaty claim.
File the return for the year of sale and claim back excess TDS.
Send the sale proceeds abroad within RBI limits.
Claim credit for the Indian tax in your country of residence.
Selling property you inherited? Start with succession and title.
We work out the expected capital gain and tax from your purchase and sale details.
We prepare and file the lower or nil TDS certificate application and follow up with the tax officer.
We share the certificate with the buyer and explain the TDS deduction and deposit.
The buyer deducts TDS at the certificate rate and pays the balance into your NRO account.
Form 146 is issued by an independent Chartered Accountant; Form 145 is filed for the remittance.
We file your income tax return for the year and coordinate the transfer of the proceeds abroad.
For tax purposes, the sale is complete only once the return is filed and the money has reached you.
Report the capital gain in your Indian return for the year and claim credit for the TDS.
If TDS was more than the actual tax, the excess is refunded to your Indian bank account.
Tax on long-term gains can be reduced by reinvesting in a residential house in India or in specified bonds, within set time limits.
Proceeds can be sent abroad within RBI limits — see our fund repatriation service.
Share your query and our team will reply during business hours.
For a long-term sale (held more than 24 months), TDS is 12.5% plus surcharge and cess — roughly 13% to 14.95% — on the full sale price, unless the seller has a lower deduction certificate. For a short-term sale, TDS is usually 30% plus surcharge and cess.
By applying for a lower or nil deduction certificate in Form 128 (earlier Form 13) before the sale. The tax officer sets a rate based on the estimated gain, and the buyer deducts TDS at that rate. Processing commonly takes a few weeks, so apply early.
Yes, under the current rules the buyer must obtain a TAN to deduct and deposit TDS on a payment to a non-resident, and file the quarterly TDS statement. Check the rule in force at the time of your sale, as changes for individual buyers have been proposed.
From 1 April 2026, Form 15CA is replaced by Form 145 and Form 15CB by Form 146, which is issued by a Chartered Accountant.
If the property was bought with foreign exchange, the amount paid in foreign exchange can be repatriated, for up to two residential properties. Other proceeds fall under the USD 1 million per financial year limit from your NRO account.
ACS – Director, Expertvuw Management Pvt Ltd
Property sale cases are handled by Expertvuw’s team. Form 146 and any other certificate required by law are issued by an independent Chartered Accountant engaged for your case.